Is After The Event Insurance Worth It?

    By Mary Scott. Last Updated 23rd May 2022. You may be asking the question is After The Event insurance worth it? The answer is that it could be if you want to cover legal costs and expenses associated with pursuing a case.

    After The Event (ATE) insurance cover is typically taken out by solicitors on behalf of claimants they represent, although this type of policy can be used by defendants or claimants. With this said, After The Event insurance policies are typically only used by the claimant.

    After The Event Insurance And No Win No Fee Claims

    If you were injured in an accident through no fault of your own, our guide explains how to seek compensation by making a personal injury claim against a responsible party. We explain what an After The Event insurance policy covers and how and when you should take out this type of cover. The guide provides information on the cost of ATE insurance policies and whether the premium has to be paid upfront.

    It is important to note there is a time limit which you must respect when seeking compensation for an injury you sustained through no fault of your own. This time limit is 3 years from the date of your accident or the date that you obtained knowledge that you were suffering from an illness or injury which you believe was the fault of a third party.

    As such, you have to make sure you are within the deadline when pursuing a personal injury claim against a responsible party.

    To find out more about After The Event insurance, please continue reading our guide by clicking on the sections below.

    If you would like to speak to a Legal Helpline adviser about making a No Win No Fee claim if you feel ready to begin, please call us on 0161 696 9685.

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    A Guide To After The Event Insurance

    Our guide to After The Event insurance policies provides useful information regarding this type of insurance. We explain the origins of ATE policies and how this form of cover allows claimants to take out insurance against the risk of having to pay defendants costs if their case is unsuccessful. The guide also covers whether After The Event insurance is worth taking out and when it could be.

    After the event insurance guide

    After the event insurance guide

    We provide essential reading on what ATE insurance covers, and who would pay the cost of this type of insurance policy. The guide also explains how No Win No Fee claims and After The Event insurance work hand in hand. We also explain how our panel of Legal Helpline solicitors could represent you without asking for an upfront fee which would involve signing a No Win No Fee Agreement with them.

    The guide goes on to explain how such agreements work and what this type of legal contract between a No Win No Fee lawyer and a claimant entails.

    To discuss a personal injury claim and After The Event insurance with a member of the Legal Helpline team, please contact us today. We provide an initial consultation that is not only free of charge but you would have no obligation to pursue a claim should you not wish to.

    What Is After The Event Insurance?

    Also known as ATE, an After The Event insurance policy is an agreement between an insurance company and a claimant. This arrangement covers additional costs which No Win No Fee agreements do not. Solicitors who represent their clients would ensure they are aware of the Terms and Conditions of a Conditional Fee Agreement and how taking out ATE may be required as a way of mitigating financial liabilities.

    There have been several unscrupulous lawyers who have been forced to cover thousands of pounds in disbursements by the Legal Ombudsman. On top of this, these rogue solicitors were also forced to pay thousands in compensation to the clients they represented.

    Typically, After The Event insurance is taken out at the same time as a Conditional Fee Agreement. In many instances, the two go hand-in-hand. You may wonder why it is necessary to take out ATE insurance cover, and the answer is that this type of policy can provide a valuable safety net.

    To find out whether After The Event insurance could apply to your own personal injury claim, please speak to a member of the Legal Helpline team today.

    What Does ATE Cover?

    Many people who agree to be represented by a No Win No Fee lawyer ask what ATE covers and whether it is worth taking out. After The Event insurance typically covers legal costs which claimants have to pay when a personal injury claim is unsuccessful. These payable costs often relate to the defendant. In such instances, it is the claimant who must pay a defendant’s costs.

    ATE insurance policies also cover disbursements which the No Win No Fee lawyer incurs when pursuing a personal injury claim on behalf of a claimant. These could include the following, all of which the solicitor would have paid out on their client’s behalf:

    • Medical reports
    • Police reports
    • Court fees
    • Barrister’s fees

    To find out more, please contact Legal Helpline today.

    How And When Should You Purchase ATE Insurance?

    After The Event (ATE) insurance is typically taken out after an accident has occurred which is referred to as “The Event”, but prior to any important disbursements or legal costs being paid out. As such, ATE policies are often purchased when a solicitor takes on a case for a claimant.

    This type of insurance policy protects a claimant from any costs at the outset of a case being filed against a defendant. It is worth noting that should ATE insurance be taken out later, it would mean that legal costs and disbursements paid out before the After The Event insurance policy was taken out would not be covered.

    Who Pays The Cost For ATE?

    Apart from the benefits of taking out After The Event insurance cover, another positive is that you would not be asked to pay for the insurance premium upfront. As such, you would only be liable for the payment when you win your personal injury claim and the amount, also known as the premium, would be deducted from the compensation you are awarded.

    Should your case be unsuccessful, and the terms and conditions of the insurance cover are respected, there would also be nothing to pay. It is also worth noting that ATE insurance policies rely on strong claims which are deemed to have at least a 55-60% chance of success.

    To speak to a Legal Helpline adviser about whether it is worth taking out ATE insurance, please get in touch today.

    How Much Could After The Event Insurance Cost

    The cost of taking out After The Event insurance would depend on the complexity of a personal injury claim. As such, a solicitor would determine the level of insurance cover you would need to take out when initially assessing your case. If your claim is deemed less risky, a No Win No Fee solicitor may recommend that ATE insurance cover may not even be required.

    Premiums for ATE insurance begin at about £100 but the amount can be higher depending on the risk involved. As such, a premium could be anything from £250 to £400.

    It is worth noting, however, that the premium would be deducted from the personal injury compensation you are awarded and therefore, there would be no upfront payment to find when you take out After The Event Insurance cover.

    No Win No Fee Compensation Claims Calculator

    The compensation you could be awarded in a successful personal injury claim might be broken down into two parts, namely general damages for your pain, suffering and the detrimental impact to your life, and special damages, which relate to financial losses caused by the injury.

    The table below provides an idea on the level of general damages you could receive which are based on the Judicial College Guidelines. The amounts do not include any special damages you could factor into your personal injury claim against a responsible party.

    Injury TypeDetailsGeneral Damages Awarded based on the JCG
    Moderately severe brain damageMay suffer a serious disability £219,070 to £282,010
    Less severe brain damageMay make a good recovery but suffer loss of some functions£15,320 to £43,060
    Very severe foot injuryCould suffer permanent or serious injuries, disability£83,960 to £109,650

    Severe foot injuryFracture to both heels or negative impact to existing injuries£41,970 to £70,030
    Moderate foot injuryDisplacement fractures to the foot, May leave a deformed foot£13,740 to £24,990

    Serious leg injuries(b)
    Severe Leg Injuries (i)



    £96,250 to £135,920

    Moderate leg injuries(iv)
    Moderate

    Several fractures or uncomplicated leg fractures
    £27,760 to £39,200
    Less serious leg injuries
    (i)

    Moderate fractures to a leg
    £17,960 to £27,760

    If you would like to speak to a member of the Legal Helpline team about the level of personal injury compensation you could receive, please contact an adviser today

    What Other Types Of Damages Could I Claim?

    You could be awarded special damages to compensate you for losses and out of pocket expenses incurred because of your injuries. The sort of expenses and losses you could include in a personal injury claim are as follows:

    • Loss of income during the time you recover from injuries you sustained
    • Loss of future earnings should you not be in a position to work again
    • Medical expenses which are not covered by the NHS which includes private treatment, rehabilitation, therapy, and prescription costs
    • Travel costs which include the cost of getting to a medical facility for treatment and parking fees
    • Care costs if you need help around the home during your recovery
    • Any other expenditure and losses incurred due to the injury you suffered

    For more information regarding special damages and what you could claim in a successful personal injury claim, please speak to a member of the Legal Helpline team.

    No Win No Fee Claims And After The Event Insurance

    Legal Helpline provides an initial, no-obligation consultation to all claimants which is free of charge. This allows a member of our team to assess your case to determine whether you have a strong personal injury claim.

    Once this has been established, you would typically be offered No Win No Fee terms by a solicitor from our panel. This would involve agreeing to sign a Conditional Fee Agreement (CFA) with the solicitor.

    A Conditional Fee Agreement is a legal contract between the solicitor and you. It sets out the Terms and Conditions of the agreement together with the ‘success fee’ that would only be payable once you are awarded personal injury compensation. This small fee is an agreed percentage of the amount you receive and is deducted from the compensation awarded to you.

    Should you lose your claim, the ‘success fee’, nor any other costs at all, would not be payable to the solicitor who acted on your behalf because they agreed to this when signing a No Win No Fee agreement.

    Contacting Our Team

    You’ve reached the end of our guide exploring the question: is After The Event insurance worth it? If you would like information on why it is worthwhile to take out After The Event Insurance, or if you’d like to proceed with a claim, please get in touch with Legal Helpline today.

    You can contact a member of our team in the following ways:

    After The Event Insurance FAQs

    Why do I need after the event insurance?

    After the event insurance (ATE) can prove useful because it can cover any costs that can arise during the claim, such as costs for medical reports. With ATE, you will be able to recover costs such as these even if the claim fails.

    Will I need after the event insurance if I use a No Win No Fee solicitor?

    If your solicitor is representing you on a No Win No Fee basis, they may advise you to take out after the event insurance. This is a step to protect you from any unlikely costs you may need to pay in case your claim is not successful. In a No Win No Fee agreement you do not have to pay upfront for the cost of the insurance. If your claim succeeds, the after the event insurance cost is taken out of your compensation.

    ATE insurance premium calculator

    Some solicitors may use an after the event premium calculator to estimate how much it could cost you. However, this may not be entirely accurate.

    Oftentimes, it is your solicitor that offers an after the event insurance policy. Speak with your solicitor and they will present you with all your available options.

    Quick And Useful Links

    Thank you for reading our guide which sought to answer the question: is After The Event insurance worth it? We hope you’ve found it useful. Below, we’ve included some more links you may find interesting.

    The link provided  below takes you to a guide on making a claim for a wheat allergic reaction:

    When allergic reaction claims

    The link below takes you to a guide that provides information on time limits linked to personal injury claims:

    Time limits personal injury claims

    The link provided below takes you to a guide that provides information on how No Win No Fee claims work:

    How to make a claim for whiplash

    If you suffered an injury and would like more information on ATE insurance, please click on the link below:

    After The Event insurance

    For more information on Fixed Costs and Disbursements, please follow the link below:

    Fixed Costs and Disbursements

     

    Guide by HD

    Edited by REG